Z Energy's profit rises

Fuel retailer Z Energy's net profit has risen sharply driven by gains from the Marsden Point refinery and cheap oil, but it has forecast a flat year ahead.

Photo: RNZ

The company's profit rose to $64 million in the year ended March, from $7 million last year as it benefited from higher margins on refining fuel.

The firm's operating profit, which takes account of movements in the value of its investments, fell slightly to $238 million, but that included $25 million of one-off costs associated with the takeover of the Caltex chain.

"Z's exposure to the performance of Refining NZ has been positive over the year, with the refinery contributing $48 million, up from $31 million last year," said chief executive Mike Bennetts.

The company has a stake in the refinery and also imports cheap fuel directly in conjunction with BP.

It expects an operating profit of between $260 million to $290 million in the year ahead.

Last month the Commerce Commission approved Z Energy's takeover of the Caltex chain from Chevron, which gives it just under half of the national petrol market.

It said the fuel market remained competitive with more discounting taking place.

Z Energy said its tie-up with Countdown supermarkets would end and from the end of July it would no longer take their petrol vouchers.

Separately Countdown has announced it's linking up with BP and Caltex stations from August.